Part 2.

Pricing your work is one of the trickiest parts of working freelance. There are so many variables to consider and it can be one of the main pain points for both you and the client. Unfortunately, there’s no magic formula that works for everything, but I’m going to share my systematic method that will help you evaluate each project. This method applies to a wide variety of jobs and is a good starting point for setting your rates.

Factors I Consider for Pricing Projects

Client size:

• Big corporation vs. small business or individual (Price higher for larger companies, lower for small businesses)

• How much will the client make from my work?

Scope of work:

• How many hours will this take?

• Are there costs other than labor, like materials?

• Timeline and deadlines (tight deadlines = rush fees)

Other Considerations:

• How experienced am I at this type of work?

• Will I get proper attribution?

• Will I enjoy the work?

• Will this bring benefits like experience, learning opportunities, or exposure?

• Does the client seem easy or difficult to work with? Are they trustworthy?

Don't know where to start? Try these 2 things:

1. Do as much research as possible on your own about an appropriate rate range
   
   

2. Ask the client for their budget

Research!

For pricing any job, I’ll do some research to see what other artists charge doing similar jobs. I can usually find good information on Reddit, LinkedIn, Glassdoor, or other web forums. I will also ask people I know personally, which is usually where I get the most informative answers. When doing research, take into consideration experience levels, project similarities and differences, and the client size. Even if you can’t find an exact match to your job, finding a few rates for similar jobs can give you a good approximate range. You can also make a post in one of the forums to see if any people respond with more information too.

Ask for the budget

If you are still uncertain about how much you should charge, ask the client for their budget. Most clients will already have a budget in mind and will tell you how much they are willing to pay. This is a good indicator of how legitimate this client is. Based on this number, you can accept the job, negotiate for a higher rate, or not take the job. It’s still a good idea to do your own research and have an estimate in mind so you can make an informed decision about taking on the work or not. Remember that you always have the right to walk away if you feel like it’s not worth your time.

Hourly or Per Deliverable

There are many ways to set your rate, but the two most common are hourly or per deliverable.

Hourly

Setting an hourly rate is good for projects that have a lot of variables or when you don't know how long the project will take. Typically, clients who accommodate an hourly rate are larger companies where you will be responsible for a specific role on a project. A benefit of working hourly is it prevents scope creep as the client is aware things will cost more if there are changes or additions, and you can bill them according to your time spent.

Communication is Key

Make sure you clearly communicate the estimated number of hours beforehand to the client before starting the work. If circumstances change and you expect to go overtime, confirm with the client before doing more work than what you promised. Transparency and communication are the most important things when it comes to working with clients.

Per Deliverable

Setting a price per deliverable is more common for projects that have clear parameters and can be easily estimated with little risk of scope creep. Per deliverable pricing is common for smaller, shorter term projects with individuals or small businesses, but large companies can prefer this payment method too depending on the project.

The Risks of Per-Deliverable Pricing

For this billing method, it’s crucial that you are able to estimate the time it will take you to do certain tasks. If you are not able to estimate the amount of work accurately, you can be stuck with more work than you anticipated. It takes experience to be able to estimate how long certain projects will take, so try to be aware and take note of how long things take for you from early on in your career. You'll get better at estimating your time as you gain more experience.

How to Negotiate Your Rate

If your client sends you a budget that is lower than what you expected (but not unreasonably low), you can try to negotiate a higher rate with them. It's common for clients to send a lower budget and leave room for negotiation, so it never hurts to ask. Asking for a higher rate can be nerve-wracking, but remember that the worst they can say is no, and then you can decide whether you want to take on the work.

Negotiation Tips

When negotiating, be polite and mention your enthusiasm for the project. Keep the conversation open to consideration. Unless you are 100% set on your rate, it's nice to show that you are open to further discussion as well. Here's an example of how I would reach out to a client to negotiate my rate:

If a company requested for me to do 3 character designs for $1000, but my rate is $500 per character, I might email them something like…

Hello X,

Thank you for sharing your budget details.

Based on the project scope we discussed, my standard rate for this type of work is $500 per character. Would that work within your budget?

I'm very excited about this project and would love to find a way to make it work!

Feel free to let me know your thoughts, and I'm happy to discuss if you have any questions.

Thank you,

Yumi.

The client could reply with a no, approval, or counter with a slightly lower price. At this point, it's up to you to decide whether to take the job. Remember that you can always walk away or pass it along to a peer if it doesn't sound like a good fit.

Final Thoughts…

Setting your rates as a freelance artist can be intimidating, but developing and following a systematic approach like the one I shared today will set you up for success in asking for what you are worth. Remember that pricing is a skill like any other and the more experience you get, the more intuitive and successful your rate-setting will become.